By: Barbara Zigah
As was generally expected, the outcome of the last European Union summit left investors unsatisfied and the Euro, as a result, fell in Asian trading against the U.S. Dollar. Most investors expect that the common currency will be hard pressed to gain any significant footing going into the end of the year. The members of the E.U., with the notable exception of the United Kingdom, agreed that they would each pursue tighter budget rules in accordance with the collective treaty agreement. The outcome also provided more funding to the IMF, in the amount of €200 billion, which could provide additional bilateral loans to those member nations which might need it.
While the summit did not yield any new policy measures that would provide a quick boost to the European economy which was a disappointment to the markets the Chinese government appeared at least satisfied and has reportedly said that they stand ready to invest some €300 billion in the Eurozone. As reported at 12:06 p.m. (JST) in Tokyo, the Euro trading at $1.3355, reversing the gains of 0.2% made in the last trading session. Since the October peak, the common currency has lost nearly 0.6% of its value.